Major Business Groups Endorse Bank Transparency Amendments
Six leading Philippine business organizations have voiced strong support for long-overdue reforms to the country’s bank secrecy framework. The proposed amendments aim to modernize Republic Act (RA) 1405, or the Law on Secrecy of Bank Deposits, and RA 6426, the Foreign Currency Deposit Act. These legislative changes are designed to align the Philippines with international financial transparency standards and empower regulators to investigate illicit activity more effectively.
Coalition of Industry Leaders Calls for Reform
In a joint statement, the Makati Business Club, Management Association of the Philippines, Financial Executives Institute of the Philippines, Filipina CEO Circle, Justice Reform Initiative, and the Institute of Corporate Directors expressed unified support. They emphasized that outdated secrecy provisions have long limited the ability of the Bangko Sentral ng Pilipinas (BSP) to investigate corruption and money laundering cases. The groups described these laws as “straitjackets” that constrain regulatory efficiency and accountability.
BSP Empowerment and Anti-Corruption Measures
Under the proposed amendments, the BSP would gain authority to review deposit accounts linked to suspected criminal or fraudulent activity. Business leaders argue that such powers are crucial to improving the enforcement of anti-money laundering (AML) and anti-corruption measures. This shift mirrors best practices adopted in other ASEAN economies, which have successfully balanced banking privacy with institutional oversight.
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Transparency and Public Accountability Through SALN Access
The coalition also expressed support for restoring full public access to the Statements of Assets, Liabilities, and Net Worth (SALNs) of government officials. This provision, initially mandated under RA 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees, has been inconsistently applied in recent years. The business groups said making SALNs accessible once again would reinforce the principle that public office is a public trust.
Good Governance and Economic Stability
The joint statement highlighted that effective governance reforms extend beyond legislation—they also depend on consistent enforcement and public trust. Transparent financial systems foster investor confidence, reduce corruption risks, and lower the cost of doing business. The organizations stressed that predictability in governance encourages both domestic and foreign investment, fostering sustainable economic growth. A transparent system also aligns with the Philippines’ commitments under global AML and anti-terror financing frameworks.
Reforms to Strengthen Global Financial Credibility
Once enacted, these reforms are expected to boost the country’s reputation in the international financial community. By allowing regulators to trace suspicious funds and prosecute offenders, the Philippines could move closer to full compliance with Financial Action Task Force (FATF) standards. This alignment is essential for avoiding potential grey-listing, which can discourage foreign investments and increase international transaction costs.
Business Community Advocates for Implementation and Enforcement
While endorsing the reforms, the signatory organizations stressed that the success of these laws depends on strict enforcement and institutional integrity. They cautioned that merely passing the legislation is insufficient without ensuring accountability for violators. Businesses also urged lawmakers to establish safeguards to prevent misuse of investigative powers and ensure protection for legitimate depositors. The goal, they said, is to build a system that is both transparent and fair.
A Call for Unified Action Between Government and Industry
The business sector reiterated its commitment to working closely with legislators, regulators, and civil society to implement the proposed changes. Collaboration between the private and public sectors, they said, is vital for maintaining financial integrity and restoring public confidence in institutions. By promoting fair and transparent practices, the reforms could serve as a foundation for broader governance initiatives in the coming years.
Outlook: Reforms Signal Progress Toward a Transparent Economy
The support from the nation’s most influential business groups marks a pivotal moment in the Philippines’ push for financial reform. Amending the bank secrecy laws and strengthening SALN transparency represent concrete steps toward improved governance and international credibility. With strong institutional will and public backing, these reforms could set a new standard for accountability—positioning the Philippines as a more trustworthy and attractive destination for global investment.
